Julio and Milania are owners of Falcons Corporation, an S corporationn. Each owns 50 percent of Falcons Corporation. In year 2, Julio and Milania each received distributions of $25,000 from Falcons Corporation. a. What amount of ordinary income and separately stated items are allocated to them for year 2 based on the information above? Assume that Falcons Corporation has $200,000 of qualified property (unadjusted basis). Birch Corporation, a calendar-year corporation, was formed three years ago by its sole shareholder. James, who has: operated it as an S corporation since its inception. Last year, James made a direct loan to Birch Corporation in the amount of $5,950. Birch Corporation has paid the interest on the loan but has not yet paid any principal. (Assume the loan qualifies as debt for tax purposes.) For the year, Birch experienced a $26.100 business loss. What amount of the loss clears the tax-basis limitation, and what is James's basis in his Burch Corporation stock and Birch Corporation debt in each of the following alternative scenarios? Note: Leave no onswer blank. Enter zero if opplicable. Problem 17.57 Part b (Algo) At the beginning of the year, James's basis in his Birch Corporation stock was $9,900 and his basis in his Bith Corporation debt was $5,950